What is a Stock Split?
A stock split is a corporate action that increases the number of a company’s available shares. This is done by dividing each share into multiple ones and reducing the share price accordingly. A stock split does not impact the company's market capitalization.
Company X is trading at $100. The trader owns 5 shares. The value of his portfolio is $500.
The company have a 2 for 1 stock split.
After the split, the trader will now own 10 shares, but the new price per share will be $50. The value of his portfolio remains $500.